Chapter 1: Starting a Business
Starting a Business needs a lot of dedication to research exactly what direction your business should take. You can’t guess this, or dream of what you want. You have to find confirmation that your idea will work and will make you money. I suggest that your research also includes finding a mentor who can help guide you in the right direction.
Too many people make the basic mistake of rushing into a business because they are in a hurry to start. Having lots of enthusiasm is great, but in reality it can be a very dangerous thing. However good you think your idea is you have to make sure that there is a place for your idea in the market place. Test it carefully, not with family and friends, but potential customers. Sometimes if you rush in too quickly you will rush out at the same speed!
A business should be built like an Egyptian Pyramid, a firm base to last for a very long time. If you take the time to do some basic research and establish your business with guidance from a CPA and Lawyer, then you start to build a firm base for your business. Don’t cut corners, do everything properly and this will pay dividends in the years ahead.
When you start a new business don’t say, “It will cost me a lot of money to use an Accountant or Lawyer.” Maybe it will, but it is essential to start your business as you mean to carry it on. You do not want to find a year or so after starting your business you have overlooked something that could ruin your business only because you did not spend a few thousand dollars to get things right from the start. If you budget your finances correctly, you will include in it a few thousand for Lawyer and Accountants fees. One tip, remember to fix the fees first! These guys charge by the hour and time runs very quickly.
The accountant will advise you on the structure the business, should it be an LLC, etc. They can tell you what will benefit you best. You Lawyer can prepare terms of trading that must also include your payment terms. State this clearly so your customers know when payment will be due. If you do not do this it will be very hard to change terms a year or two later.
Read selected chapters from the book on the links below:
- 1. Starting a Business
- 2. Identifying Your Audience: Marketing & Selling
- 3. Maximising Your Audience
- 4. Financial Management
- 5. Raising Money: Buying & Selling a Business
- 6. Professional Advice
- 7. Why Businesses Fail
- 8. Motivate Yourself to Success
- 9. What is an Entrepreneur
- 10. Summary of Points to Remember